GOV

Governmental Entities, Authority of

To insure a transfer or mortgage by a governmental body, you must verify that (1) it has legal authority (e.g., by statute) to engage in the transaction (the entity may not be able to mortgage in some cases); (2) it has provided all necessary notices and secured all required appraisals (e.g., it may be required to publish and secure an appraisal); (3) it has secured all required approvals (e.g., counsel, commissioner, or board approval; some transfers require public vote of the populace); (4) the proper persons signed the instruments; (5) the instrument contains the appropriate statutory language.

Requirement

GOVR01 STG

Satisfactory evidence required by Company

The Company requires for its review satisfactory evidence that this transaction by the seller/borrower has been properly approved as required by applicable law, and that all required notices and appraisals have occurred. At the time the company is furnished those items, the Company may make additional requirements or exceptions.
Comment: To insure a transfer or mortgage by a governmental body, you must verify that (1) it has legal authority (e.g., by statute) to engage in the transaction (the entity may not be able to mortgage in some cases); (2) it has provided all necessary notices and secured all required appraisals (e.g., it may be required to publish and secure an appraisal); (3) it has secured all required approvals (e.g., counsel, commissioner, or board approval; some transfers require public vote of the populace); (4) the proper persons signed the instruments; (5) the instrument contains the appropriate statutory language.
Note: You may add local requirements here. Please consult with our underwriting personnel in preparing appropriate provisions.

GOVR02 STG

NY

Proof is required that ____[name of municipality]___ has complied with all applicable laws relating to the [conveyance][mortgage][lease] of the premises to be insured hereunder.

GOVR03 STG

Conveyance or mortgage by an Industrial Develop

Title is to be acquired [mortgaged/conveyed] by __________, an Industrial Development Agency (IDA). The following proofs of due formation and authority are required:

(a) A copy of the resolution passed by __[municipality]__ directing a request be made to the legislature to form ____________ Industrial Development Agency must be furnished to the Company (See Municipal Home Rule Law §40);

(b) Proof of filing with the Secretary of State, within six months of the date of passage of the act creating the IDA, of the certificate stating the name of the IDA, the date it was created and the names and terms of the agency’s members (See General Municipal Law § 856.1(a));

(c) A copy of the IDA’s bylaws should be provided to the Company for review, for a determination of the capacity of the IDA to enter into the proposed transaction, and to ascertain the proper parties to execute the closing instruments;

(d) A copy of the IDA resolution authorizing the transaction to be insured, showing that the resolution was adopted by a majority of the members.

GOVR04 STG

Sale of IDA Bonds

The resolution of the ____________Industrial Development Authority approving the sale of the bonds to be secured, and any agreements between said IDA and the insured must be reviewed by Company in advance of closing for a determination as to any special requirements that may be necessary for the transaction to be insured, and to determine whether the full proceeds of the bond sale are at the unqualified disposal of the IDA.

GOVR05 STG

Sale of excess lands acquired by State for high

The following proofs are required in connection with the disposal of lands acquired by the State of New York for highway purposes, in accordance with Highway Law § 30.18:

(a) That the terms of sale are beneficial to the state of New York; that the sale does not impair the access of existing frontage of an adjoining owner to the highway (unless the highway is limited-access); and

(b) The Attorney General of the State of New York is required to prepare the conveyance, and must approve the form and manner of the instrument’s execution.

GOVR06 STG

Institutional mortgage to NYS Dormitory Authori

The following proofs are required in connection with the mortgage to be insured hereunder, pursuant to Public Authorities Law § 1680:

(a) That the proposed mortgagor is an educational institution, as defined in the statute;

(b) That the agreement required by the statute has been entered into, and that the mortgage loan to be insured hereunder is in conformity with the statute; and

(c) That the making of the mortgage will not conflict with specific legislation, trusts, endowments, or other agreements relating to specific funds or properties of the mortgagor.

(d) (in duplicate original) That the transaction is exempt from the mortgage recording tax pursuant to Tax Law § 253.3., by virtue of the mortgage being made to the New York State Dormitory Authority.

GOVR07 STG

Mortgage made by NYS Dormitory Authority

The following requirements are made in connection with the mortgage to be made by the New York State Dormitory Authority to the insured:

(a) Proof is required that the proposed transaction is not prohibited by statute or the bylaws of the Dormitory Authority;

(b) A “certificate of incumbency” and appropriate resolution of the Board of the Dormitory Authority is required, as evidence that the parties executing the mortgage instruments on behalf of the Authority are duly authorized to do so;

(c) Proof is required that the terms, conditions and provisions of agreement between ______________ and the Dormitory Authority do not limit the power of the Dormitory Authority to enter into the transaction; policy will except the terms, conditions and provisions, including the reversionary right, pursuant to Public Authorities Law § 1680.2.(d), upon payment or discharge of the obligation.

GOVR08 STG

Urban Renewal Authorized Mortgage in Area with

The real property to be mortgaged is in an area subject to an urban renewal plan. The following proofs are required:

(a) That the loan is authorized pursuant to [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale];

(b) That any notices have been given to and approvals obtained from ___[urban renewal agency][municipality]__ required by the [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale] have been given;

(c) Policy excepts the terms, provisions, covenants, conditions and restrictions affecting the property as set forth in the [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale], including any reverter provision.

GOVR09 STG

Urban Development Corporation

Policy excepts Covenants, Restrictions and Reverter provisions contained in Land Disposition Agreement and in deed made between the City of New York (or municipality name) and the Insured but insures that same will not defeat, invalidate or limit the validity or priority of the lien of the mortgage insured herein.

GOVR10 STG

Sale or Lease of Land Use Improvement Projects

Sale or Lease of Land Use Improvement Projects by a Not-For-Profit Corporation or subsidiaries, under the New York State Urban Development Act, as amended, must comply with Unconsolidated Laws Section 6256.

GOVR11 STG

NYS Commissioner of Transportation, Sale by

Title to the property to be insured was acquired by the department of transportation pursuant to the eminent domain procedure law and Section 30 of the Highway Law. Proof of the following is required:

(a) The Attorney General must approve the form and manner of execution of the instrument to be insured, pursuant to subdivision 18 of Highway Law § 30.

(b) The Commissioner of Transportation must determine that the sale is on terms beneficial to the State of New York; and

(c) The Commissioner of Transportation must execute the closing instrument.

GOVR12 STG

Port Authority of New York and New Jersey

In advance of closing, Company must be furnished with a true copy of the resolution of the board of commissioners of the Port Authority of New York and New Jersey, adopted in accordance with New York Unconsolidated Laws § 6417, authorizing the [sale/purchase/mortgage/lease/grant of easement/etc.]of the premises described in Schedule A.
Proof is required that the Governor of New York (pursuant to Unconsolidated Laws §§ 7151 and 7152) and the Governor of New Jersey (pursuant to N.J.S.A. § 32:2-28, ff.) have either approved or not vetoed the proposed transaction, unless the need to do so has been dispensed with.
The requirements of Unconsolidated Laws §6951 must be strictly met.
Consent of the New York State Department of Transportation pursuant to Unconsolidated Laws §6409 and the equivalent New Jersey agency under equivalent statute must be obtained.

Exception

GOVX01 STG

Where IDA is mortgaging or a mortgage made by a

Policy excepts the terms, conditions and provisions of the resolution of _____________Industrial Development Agency approving the sale of the bonds to be secured by the insured mortgage, and the terms, conditions and provisions of the agreement between the IDA and the mortgagee insured, relating to the funds used for the purchase of the bonds.

GOVX02 STG

Insurance of interests flowing through an IDA t

Policy excepts the terms, conditions and provisions of the __(deed, lease, sublease, lease assignment)__ made by _____________Industrial Development Agency to the insured hereunder.

GOVX03 STG

Where Dormitory Authority is issuing bonds

Policy excepts the terms, conditions and provisions of the resolution of the New York State Dormitory Authority approving the sale of bonds to finance the improvement on the premises, and the agreement, if any, between the Dormitory Authority and the purchaser of the said bonds.

GOVX04 STG

Urban Renewal Agency lands

Terms, covenants, restrictions, reservations, easements and conditions [with rights of [reverter][reversion][re-entry]:

{set forth in Urban Renewal Plan dated __/__/__ and filed in the _______ County Clerk’s Office under Index No. ________, as same may have been amended.}

{contained in [Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale][deed] recorded on __/__/__ in __(Liber, Record Liber, Reel)____ (C)p___.}

GOVX05 STG

Certificate of Completion required to eliminate

A Certificate of Completion is required pursuant to ___(source documents)___, in order to release the [reverter][reversion][right of re-entry]

GOVX06 STG

Affirmative insurance for Certificate of Comple

. . . but notwithstanding same, policy insures that upon execution by the Urban Renewal Agency or its successors of a Certificate of Completion, and the proper recording of same in the land records of the County, the rights of [reverter] [reversion] [re-entry] contained in the aforementioned instrument will no longer be in force.